13 September 2007

Mr Bill Daly Commercial Director Colas Rail Limited Stephenson House 2 Cherry Orchard Road Croydon CR9 6JA

Dear Mr Daly,

Colas Rail Limited

This letter confirms that the Office of Rail Regulation’s (ORR’s) general approval for third party liability insurance (TPLI) arrangements’ applies to the TPLI obligations of Colas Rail Limited (Company number 2995525) with the following variation(s):

| Section in ORR’s general approval | Variation | |-----------------------------------|-----------| | 3d – cover is on an ‘occurrence’ basis. | Cover provided above primary layer is on a ‘claims made’ basis. |

This variation applies while this condition is met:

| No. | Condition | |-----|-----------| | 1 | You can and will cover any claims that could be made against you as if you were covered by occurrence based insurance. |

While you meet this condition, you may rely on the general approval with the variation set out above. This means that you only need to provide us with a broker’s confirmation that cover is in place in accordance with the general approval as varied by this letter when you renew your cover. A template confirmation letter can be found on our website.

http://www.rail-reg.gov.uk/upload/pdf/3rdptyins_genapp-230207.pdf You do not need to send us director’s and auditor’s statements detailing your self-insurance arrangements, insurance certificates or full policy documentation. You should however satisfy yourselves that you have a reasonable expectation of being able to meet your self-insurance obligations, and keep appropriate records in case we want to see them.

If you have any questions, my colleague Gordon Herbert (gordon.herbert@orr.qsi.gov.uk, 020 7282 3964) will be pleased to help.

A copy of this letter will be placed on ORR’s public register.

Please forward a copy of this letter to your insurance brokers.

Yours sincerely,

Robert M. Plaskitt

Rob Plaskitt